Didi launched a free robotaxi service in parts of Shanghai in 2020.
Vcg | Visible China Group | Getty Photographs
BEIJING — Chinese language electrical car agency Xpeng talked about Monday it’s purchasing for Didi’s good electrical car development enterprise in an alternate of shares worth $744 million.
The Chinese language ride-hailing agency will turn into a strategic shareholder of Xpeng, and the two companies wish to cooperate in promoting, financial and insurance coverage protection suppliers, charging, robotaxis and worldwide development. That’s in step with releases from every companies.
Xpeng shares rose larger than 13% in Hong Kong shopping for and promoting as of Monday morning.
With the strategic partnership and new belongings from Didi, Xpeng talked about it plans to develop {an electrical} car for launch subsequent yr beneath a model new mass market mannequin that may purpose the 150,000 yuan ($20,580) worth fluctuate.
Xpeng’s automobiles normally promote for spherical 200,000 yuan or further. The brand new mannequin, developed beneath the enterprise establish “MONA,” is about to be completely totally different from that of Xpeng.

The startup’s handle Didi comes as many companies seek for strategies to grab a slice of China’s rising nevertheless extraordinarily aggressive electrical car market.
In late July, Xpeng and German auto massive Volkswagen signed a deal to develop two new electrical automobiles for China beneath the VW mannequin, that’s set to launch in 2026.
Below the settlement, Volkswagen plans to take a position about $700 million in Xpeng for a 4.99% stake.
Nonetheless working at a loss
The gives come as standard auto giants have the cash {that electrical} car startups lack.
Earlier this month, Xpeng reported second-quarter internet loss 2.8 billion yuan ($384.5 million) — a wider loss than analysts anticipated and a very powerful quarterly loss as a result of the agency went public three years up to now.
Xpeng offers numerous essentially the most superior assisted driving know-how accessible to drivers in China. However the startup’s month-to-month car deliveries have remained low versus rivals’ similar to BYD and Li Auto.
The Didi electrical car enterprise — held by a subsidiary often called Da Vinci Auto Co. — has moreover racked up losses. These for 2022 larger than tripled from the prior yr to 2.64 billion yuan, in step with a Hong Kong stock alternate submitting. The unit had internet belongings of 937 million yuan as of June 30.
These financial outcomes are set to be consolidated into Xpeng’s financial statements after the preliminary deal, the submitting talked about.
The deal is predicted to be completed in phases, with Didi set to acquire further shares if the model new mass market car mannequin does successfully for an anticipated full 3.25% stake in Xpeng.
Below the settlement, Didi can’t promote the shares for two years after the preliminary closing of the deal.
The strategic cooperation settlement is about to ultimate for not lower than 5 years.
Didi itself has tried to develop robotaxis and electrical autos, amid enterprise setbacks throughout the ultimate two years.
The ride-hailing massive delisted from the New York Inventory Alternate merely months after going public in 2021, and went by way of a now-concluded authorities probe. Whereas the stock stays tradeable over-the-counter, plans for an anticipated Hong Kong itemizing keep unclear.
— CNBC’s John Rosevear and Arjun Kharpal contributed to this report.